69% of Buyers are Wrong About Down Payment Needs

According to a recent survey conducted by Genworth Financial Inc. at the Annual Mortgage Bankers’ Association Secondary Market Conference, mortgage professionals say that first-time buyers still believe a 20% down payment is necessary to buy in today’s market.

Nearly 40% of mortgage industry professionals surveyed believe that a lack of knowledge about the home-buying process is keeping potential buyers on the sidelines. Saving for a down payment is often cited as a huge barrier for first-time homebuyers to make the leap into homeownership.

If homeowners believe that they need a 20% down payment to enter the market, they also believe that they will have to wait years (in some markets) to come up with the necessary funds to buy their dream homes.

The greatest source of confusion cited in the survey results centered around down payments. The results are broken down in the chart below:

Rohit Gupta, CEO of Genworth Mortgage Insurance had this to say,

"While first-time homebuyers continue to drive the purchase market, we believe many are staying on the sidelines due to the misconception that a 20 percent down payment is required to secure a mortgage.

There are various low down payment options available today that allow prospective homebuyers to reach their dreams of homeownership sooner. It is crucial that, as an industry, we proactively educate eligible borrowers about solutions that will enable them to buy a home when they're ready."

Bottom Line

Don’t let a lack of understanding of the home-buying process keep you and your family out of the housing market. Meet with a local real estate professional who can show you your options today!

Source:Keeping Current Matters | KCM Crew 06082017

If Your Home Hasn’t Sold Yet… Definitely Check the Price!

The residential housing market has been hot. Home sales have bounced back solidly and are now at their fourth highest pace over the past year. Demand has remained strong ­throughout spring as many real estate professionals are reporting bidding wars with many homes selling above listing price. What about your house?

If your house hasn’t sold, it could be the price.

If your home is on the market and you are not receiving any offers, look at your price. Pricing your home just 10% above market value dramatically cuts the number of prosp­­ective buyers that will even see your house. See chart below.

Bottom Line

The housing market is hot. If you are not seeing the results you want, sit down with your agent and revisit the pricing conversation.

Source:Keeping Current Matters | KCM Crew 06062017

5 Reasons You Should Sell This Summer

Here are five reasons listing your home for sale this summer makes sense.

1. Demand Is Strong

The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains very strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home.

Take advantage of the buyer activity currently in the market.

2. There Is Less Competition Now

Housing inventory is currently at a 4.2-month supply, well under the 6-months needed for a normal housing market. This means, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in that market. This is good news for home prices. However, additional inventory could be coming to the market soon.

There is a pent-up desire for many homeowners to move, as they were unable to sell over the last few years because of a negative equity situation. Homeowners are now seeing a return to positive equity as real estate values have increased over the last two years. Many of these homes will be coming to the market this summer.

Also, builder's confidence in the market has hit its highest mark in over 11 years. Experts are predicting that new construction of single-family homes will ramp up this summer.

The choices buyers have will continue to increase. Don’t wait until all this other inventory of homes comes to market before you sell.

3. The Process Will Be Quicker

Fannie Mae anticipates an acceleration in home sales that will surpass 2007's pace. As the market continues to strengthen, banks will be inundated with loan inquiries causing closing-time lines to lengthen. Selling now will make the process quicker & simpler. According to Ellie Mae’s latest Origination Insights Report, the time to close a loan has dropped to a new low of 42 days, after seeing a 12-month high of 48 days in January.

4. There Will Never Be a Better Time to Move Up

If you are moving up to a larger, more expensive home, consider doing it now. Prices are projected to appreciate by 4.9% over the next year, according to CoreLogic. If you are moving to a higher-priced home, it will wind up costing you more in raw dollars (both in down payment and mortgage payment) if you wait.

You can also lock in your 30-year housing expense with an interest rate around 4%right now. Rates are projected to increase in the next 12 months.

5. It’s Time to Move on with Your Life

Look at the reason you decided to sell in the first place and determine whether it is worth waiting. Is money more important than being with family? Is money more important than your health? Is money more important than having the freedom to go on with your life the way you think you should?

Only you know the answers to the questions above. You have the power to take control of the situation by putting your home on the market. Perhaps the time has come for you and your family to move on and start living the life you desire.

That is what is truly important.

Source:Keeping Current Matters | KCM Crew 06052017

Why Working with a Local Real Estate Professional Makes All the Difference

If you’ve entered the real estate market, as a buyer or a seller, you’ve inevitably heard the real estate mantra, “location, location, location” in reference to how identical homes can increase or decrease in value due to where they’re located. Well, a new survey shows that when it comes to choosing a real estate agent, the millennial generation’s mantra is, “local, local, local.”

CentSai, a financial wellness online community, recently surveyed over 2,000 millennials (ages 18-34) and found that 75% of respondents would use a local real estate agent over an online agent, and 71% would choose a local lender.

Survey respondents cited many reasons for their choice to go local, “including personal touch & handholding, longstanding relationships, local knowledge, and amount of hassle.”

Doria Lavagnino, Cofounder & President of CentSai had this to say:

“We were surprised to learn that online providers are not yet as big a disruptor in this sector as we first thought, despite purported cost savings. We found that millennials place a high value on the personal touch and knowledge of a local agent. Buying a home for the first time is daunting, and working with a local agent—particularly an agent referred by a parent or friend—could provide peace of mind.”

The findings of the CentSai survey are consistent with the Consumer Housing Trends Study, which found that millennials prefer a more hands-on approach to their real estate experience:

“While older generations rely on real estate agents for information and expertise, Millennials expect real estate agents to become trusted advisers and strategic partners.”

When it comes to choosing an agent, millennials and other generations share their top priority: the sense that an agent is trustworthy and responsive to their needs.

That said, technology still plays a huge role in the real estate process. According to the National Association of Realtors, 95% of home buyers look for prospective homes and neighborhoods online, and 91% also said they would use an online site or mobile app to research homes they might consider purchasing.

Bottom Line

Many wondered if this tech-savvy generation would prefer to work with an online agent or lender, but more and more studies show that when it comes to real estate, millennials want someone they can trust, someone who knows the neighborhood they want to move into, leading them through the entire experience.

Source:Keeping Current Matters | KCM Crew 06022017

Can Your Real Estate Agent Answer These Important Questions?

Whether you are selling or buying a home, the real estate agent you hire is critical to guaranteeing your family makes the right decision. Most agents can walk you through the process and explain the industry 'lingo,' but you should expect so much more than that.

The housing crisis made everyone aware that truly understanding the real estate market is more complicated than it seems. Today, there are many questions your real estate agent must be able to answer to ensure your family is making the right decision. Here are just a few:

• What impact does the movement in mortgage interest rates have on buyer demand? 
• With home prices increasing rapidly, are we headed toward another housing bubble?
• Do you need a 20% down payment to purchase a home?
• Why can't we list at a higher price and drop it later if necessary?

When you are interviewing an agent to represent your family in your next real estate transaction, make sure they can intelligently answer all your questions, while simply and effectively explaining what is happening in the current housing market.

Agents: Do you have the answers to your client’s top questions and concerns in today’s real estate market? Join us later today to find out “How to Effectively Answer the 10 Questions Every Buyer and Seller is Asking Today” (2PM EST, 11AM PST). Save your seat now!

Source:Keeping Current Matters | KCM Crew 06012017

6 Ways To Easily Update And Upgrade Your Bedroom

decorpad.com

It happens. You look around one day and think, "When did my bedroom get so blah?" In the room that almost no one sees but close family, it can be easy to give all the attention to other, more public, spaces of the home. The good news is that you don't have to redo the entire bedroom to give it a fresh feel. Small changes can have big impact, and you can do them yourself in a weekend or less.

Paint

You can completely change not just the look, but also the feel, of your bedroom with a coat of paint. But it has to be the right coat of paint. Some colors aren't recommended for the bedroom because of the psychological affect they can have on people in the room. "When picking your bedroom decor, don't go off just looks - if you want to get more sleep or have more sex, that is. A survey conducted by Travelodge revealed that certain shades can stimulate or relax sleepers, and their effects last beyond nighttime," said House Beautiful. The hotel chain, just one of many institutions that have weighed in on the psychology of color and how it affects bedroom habits, found that:

housebeautiful.com

• "People with blue bedrooms got more sleep than any other color."
• Yellow "stimulates the nervous system, encouraging relaxation."
• Green "was the third best color palette for sleep, and 22 percent of respondents who slept in a green bedroom reported waking up feeling upbeat and positive."
• "People with purple bedrooms are the least rested of all, getting on average a measly five hours and 56 minutes sleep per night. The rich color is actually very mentally stimulating, making it difficult to switch off after a busy day and potentially causing vivid dreams or nightmares."
• Light brown had a surprisingly sexy effect on respondents. "Romantics, take note. Couples who sleep in a bedroom with caramel décor have sex three times per week on average, more than any other color."

Knobs and pulls

 You can change the whole personality of a piece, and the room, just by changing the hardware. This plain white dresser got an infusion of chic with brass rings. Pinterest.com

Of course, you don't have to stop at hardware. This dresser started out as a plain old IKEA Rast, and got quite the makeover. Pinterest.com

Lighting How's that overhead light looking? Pretty dated, you say? Swap it out for something more modern and give yourself something pretty to look up to. If you are the type who needs a fan in your bedroom but don't want to sacrifice style, you'll love this chandelier that incorporates fan blades. dhgate.com

While you're updating your lighting, think about your side tables, too. And while you're thinking about them, how about having a little fun with the process? Adding a little bit of whimsy, like with the Gold Geo Squirrel Accent Lamps from World Market makes things interesting in the bedroom and give you a couple of unique focal points. Even if it's only you and your partner who ever see them, they're bound to make you smile every time you flip the switch. worldmarket.com

Rug A rug in the bedroom reads "comfort" while providing another layer of décor. Don't be afraid to lay it right down on top of your wall-to-wall carpet for a luxurious look.  

  Kukoon.com

Duvet cover No need to change out all your bedding. A new duvet cover can give you a whole new look. Places like Bed Bath & Beyond and Tuesday Morning are great choices for linens. We also love the Nate Berkus Collection at Target. This Embroidered Diamond Duvet & Sham Set is super soft, super stylish, super affordable ($72 for Queen), and brings a relaxing hotel-like feel to the bedroom. Target.com

Window coverings Nothing brings a room together quicker and easier than new drapes. It's also a great way to introduce pattern in a space that may be devoid of it or that needs a punch of interest. These drapes draw the eye toward the windows and greenery outside, and also liven up a chaise that could have gotten lost in a sea of neutrals without the framing of the outdoor space.

Photo by Carolyn Woods Design Inc. - Browse traditional bedroom photos

Source:Realtytimes.com |By Jaymi Naciri , 05282017

How’s the Real Estate Market? Find Out What the Experts Are Saying

As we head into summer, it is a great time to review how the 2017 real estate market is doing so far. Here is what the experts are saying:

Doug Duncan, Fannie Mae Chief Economist

“Positive demographic factors should continue to reshape the housing market, as rising employment and incomes appear to be positively influencing millennial homeownership rates.”

Diana Olick, CNBC

“Even as more homes come on the market for this traditionally popular sales season, they're flying off fast, with bidding wars par for the course. Home prices have now surpassed their last peak, and at the entry level, where demand is highest, sellers are firmly in the driver's seat.”

Daren Blomquist, Senior VP at Attom

"I am guessing we will see it get even better… If you are considering moving, it could be a really good time to sell."

Lawrence Yun, NAR Chief Economist

"The early returns so far this spring buying season look very promising as a rising number of households dipped their toes into the market and were successfully able to close on a home last month. Although finding available properties to buy continues to be a strenuous task for many buyers, there was enough of a monthly increase in listings…for sales to muster a strong gain. Sales will go up as long as inventory does."

Mark Fleming, First American Chief Economist

“Despite higher mortgage rates, the potential for home sales increased on an annual basis driven by steady income and job growth, along with a surge in building permits. While it may be a little late for this spring, the increase in building permits is a welcome sign that some relief may be in sight for the inventory shortages that are holding back many markets from realizing their full potential this spring.”

Source: Keeping Current Matters | The KCM Crew 053017